Question: 1. At an 11% interest rate per year compounded annually, the present value (PV) of a 10-year ordinary annuity with annual payments of $4,000 is

1. At an 11% interest rate per year compounded annually, the present value (PV) of a 10-year ordinary annuity with annual payments of $4,000 is $15,000. The PV of a 10-year annuity due with the same interest rate and payments is closest to:

2. A bank quotes a stated annual interest rate of 8.00%. If that rate is equal to an effective annual rate of 8%, then the bank is compounding interest:

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